An improvement on the current means of managing a checking account and various financial transaction relationships, Automatically Balanced Checking (referred to herein alternatively as ABC Banking) consists of a specially configured and programmed computer (referred to as the Electronic Check Register or ECR) that can fit in the checkbook cover slot that usually contains a paper check register. The ECR can capture the user's full range of financial transactions with less effort and time than the traditional paper check register requires. It can also automatically synchronize each transaction with those captured in the bank's transit department, silently warn the user before he writes a check that will result in a returned ("bounced") check, warn the user when a check he is writing will incur a service charge or other penalty, and prevent many serious check writing errors before they create problems. Such errors may include: entering the wrong check number, failing to enter the check number, entering the wrong date for a check, failing to enter the check date, entering the wrong deposit date, failing to enter the deposit date, writing a check but failing to enter it in the check register, entering a check in the register and then failing to write the check without correcting the register, entering the same check twice, etc. The ECR may also self-communicate with the bank's host computer via a communications module to perform a wide variety of other previously impossible functions. One version of the ECR can perform similar functions in an office environment, where portability is less desirable and extended peripheral devices and memory are more desirable.
In addition to the above, Automatically Balanced checking may include point of sale data capture, self administered communications with the bank host, automatic transaction synchronization and synchronization correction at the transaction level along with a unique, functionally integrated host system. The system of the present invention produces a new kind of transaction accounting system that can also simplify and speed up the check register recording process, capture extended data for extended optional reporting, coordinate telephone bill payment, debit card, automatic teller machine and other transactions into one concise transaction accounting system with check payments and deposits. The present invention also eliminates the need for check return, bank fine sort or monthly mailed statements as well as perform automatic account balancing/reconciliation with both automatic and user directed error correction.
Additionally, a broad range of reports on transactions can be called up and printed at the user site. These reports, like the bank statement itself, can show not only the check number, date and amount but the full payee information and purpose information next to each transaction as well. Also, the statement and any desired reports can be "rendered" whenever the user desires, whether it fits the bank's usual statement cycles or not, and deliver up to the moment information with the full transaction image rather than the previously possible two sets of records (with uncleared items dealt with as outstanding items), without detail or with any transactions not cleared by both sources disregarded altogether.
Transactions may be captured routinely as they occur and as they would normally be entered into a paper register, except that specialized functions within the Electronic Check Register reduce the amount of information required at manual entry. No additional data entry paperwork, file setup or programming is required.